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arkvalleyinfo
December 11, 2018
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Bank deposited incorrect amount, corrected in following month

  • December 11, 2018
  • 2 replies
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We deposited $208,509.36. I recorded the amount against open invoices to reflect the income.  The bank recorded the deposit as $205,509.39. I was in conversion when this happened from another software and was behind on my reconciliation. I noticed the error 2 months after the fact. When they corrected the error they only credited $3,000.00. 

Not only am I in complete shock with the bank, I don't know how to go about reflecting this error in my books.  As of now it shows my reconciliation is off by $2999.97. 

I'm not sure where to journal this error. Maybe a holding account since I will be reflecting the deposit error in a later month? Please help!! Thanks!!

Best answer by SkinnyRaven

Add a line to the original deposit with the amount of -2999.97, for the from account use one of your banking related accounts or make one called "bank error", save the deposit. Make the deposit for the correction and use the same from account.

2 replies

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SkinnyRavenAnswer
December 11, 2018

Add a line to the original deposit with the amount of -2999.97, for the from account use one of your banking related accounts or make one called "bank error", save the deposit. Make the deposit for the correction and use the same from account.

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    arkvalleyinfoAuthor
    December 11, 2018
    This would be a GREAT idea!! When I receive payments, I deposit straight to the bank, I do not use the group with other undeposited funds..
    qbteachmt
    qbteachmt
    December 11, 2018

    When the bank error reduces what you show, you enter a Check and post to Other Asset, if you intend to get it back as a deposit later. You post to Bank error Expense, if you lost it for good. When the bank increases what you show, you enter Deposit as Other Liability, since you have to Give it Back, and later you pay out that Liability on a check.

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      petee36
      November 15, 2019

      Thank you for recommending what actual accounts to use for the two distinctions of an other asset or an expense.

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